The National Information Technology Development Agency (NITDA) of Nigeria has announced its intention to create a blockchain technology known as “Nigerium.” This innovative endeavor aims to address data protection and national security concerns while positioning Nigeria as a leader in blockchain technology.
Kashifu Inuwa Abdullahi, the Director-General of NITDA, emphasized the importance of developing a locally-based blockchain solution, citing the dominance of foreign-controlled blockchain technologies that may not align with Nigeria’s interests. The creation of Nigerium seeks to customize the technology to meet Nigeria’s specific needs and ensure adherence to local laws and regulations.
Blockchain technology, renowned for its capacity to establish immutable data records shared across computer networks, has attracted considerable attention across diverse industries. Nigeria is exploring potential applications to enhance its digital infrastructure.
The introduction of Nigerium follows various initiatives by the Nigerian government to embrace emerging technologies. In May 2023, the Federal Ministry of Communications and Digital Economy unveiled a national blockchain policy designed to bolster Nigeria’s digital economy and cultivate public trust in digital platforms. An implementation committee comprising blockchain experts and professionals was established to oversee the policy’s execution.
NITDA has been proactive in integrating blockchain technology into various sectors. The agency previously announced that National Youth Service Corps certificates would be issued and certified using blockchain technology. More recently, NITDA unveiled plans to establish research centers focused on blockchain and other emerging technologies across Nigeria’s six geopolitical zones.
The Nigerian project was proposed by a delegation from the University of Hertfordshire Law School, led by Chanu Kuppuswamy. The delegation underscored the advantages of developing a native blockchain, including the capacity to tailor the technology to meet Nigeria’s specific requirements and maintain control over critical decisions impacting the blockchain’s development and operation.
To bolster data security, the delegation recommended establishing a “Data Embassy” – a server hosted in a third-party country to provide digital continuity and protect Nigeria’s data from potential threats, such as natural disasters and cyber-attacks. They also advocated for standardizing blockchain technology across government agencies to promote interoperability and interdependence.
Abdullahi expressed enthusiasm for the project, highlighting its potential to foster collaboration between the private and public sectors. He concurred that the proposed blockchain would enhance national security and safeguard citizens’ data.
Although NITDA has reaffirmed its commitment to developing Nigerium, Hadiza Umar, the agency’s head of corporate affairs and external relations, clarified that there is currently no specific timeline for its development and implementation. The project is expected to be a collaborative effort involving NITDA, government agencies, and private sector organizations.
As Nigeria progresses with its blockchain initiatives, it continues to navigate the complexities of cryptocurrency regulation. Despite advancements in blockchain policy, Nigerian authorities remain cautious about cryptocurrency usage and adoption, as demonstrated by ongoing legal disputes with cryptocurrency exchanges.
The development of Nigeria signifies a significant stride in implementing Nigeria’s national blockchain policy and underscores the country’s dedication to harnessing emerging technologies. As the project advances, it will be imperative to monitor its impact on Nigeria’s digital landscape and its potential to address its distinct technological challenges.
